(News Bulletin 247) – The luxury sector is progressing on the Paris Stock Exchange this Friday, with the market anticipating new recovery measures, after a meeting which is due to take place next week.

Luxury stands out once again this Friday. Kering recorded the largest increase in the CAC 40 around 3 p.m., gaining 5.4%. LVMH, L’Oréal and Hermès gained 3.2%, 2.74% and 2.71% respectively.

The rise in their prices is linked to expectations of new stimulus measures in China while an important meeting with the country’s economic leaders is due to take place next week.

“The idea that China can do more on stimulus measures carried Chinese stocks this Friday with a ripple effect on luxury stocks,” notes Alexandre Baradez, head of France analysis at IG Markets.

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Demand at half mast

On Friday, the CSI 300, an index which brings together the large market capitalizations of the Shanghai and Shenzhen stock exchanges, ended up 1.3%. According to Bloomberg, citing close sources, Chinese authorities will meet on Wednesday as part of a conference and are expected to announce economic objectives for 2025 and recovery measures.

“Investors are looking forward to next week’s Central Economic Work Conference and the possibility of further reductions in the reserve requirement ratio by China’s central bank this month,” Kenny Ng, a strategist at China Everbright Securities International.

Remember that, according to Bank of America, Chinese household spending represents around 30% of the income of luxury groups.

However, Chinese demand has weakened significantly this year, due in particular to a deteriorating economy. HSBC expects sales generated by Chinese customers to fall by 3% on a like-for-like basis in 2024. Sales made in mainland China alone are expected to fall by 17%. For 2025, the bank only expects a moderate rebound in spending of 2% from this clientele.